Steel is a versatile metal. It is an alloy of 97.9% iron and carbon 2.1% in its composition. It is widely used in almost every sector of industrial production. Automotive, railway loco and tracks, buildings, household appliances, bridges, boats, weapons, and other industries. Steel has many plus sides for its wide coverage.
Reasons For
the Popularity of Steel
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Durable-
It is a sturdy metal that can withstand the weight
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Easy
to manufacture- can be alloyed and manufactured with many techniques
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Varieties
of Steel – can be mixed with other minerals such as chromium, vanadium,
tungsten and many more. For instance, a mixture of steel and chromium results
in stainless steel.
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Recyclable-
most steel products are recyclable. They can be reused from scrap metal instead
of raw ore. The US is one such country that uses about 60% of steel from scrap
that is recycled.
Top Leaders
in Global Steel Production
The wide-ranging
use of steel is however not at par with its production. Of the 193 nations,
only 64 countries currently produce crude steel. This amounts to 98% of total
steel production in the world. As per the World Steel Association data, World crude steel production for the
64 countries reporting to the World Steel Association (world steel) was 174.4
million tonnes (Mt) in May 2021, a 16.5% increase compared to May 2020. (https://worldsteel.org/media-centre/press-releases/2021/may-2021-crude-steel-production/) A graphical representation from the
site is as below for a visual representation of the production scale.
The Recent
Scenario
As per the data
available till May 2021, the top 10 steel-producing nations are as below:
1. China-
2. India
3. Japan
4. United States
5. Russia
6.SouthKorea
7. Turkey
8. Germany
9. Brazil
10. Iran
Reasons
That Pegged India’s Steel Production
India surpassed
Japan as the second-largest producer of steel in 2019. There are several
reasons attributed to it.
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Efforts
made by the Government Of India- A change in the national Steel Policy as of
2017 supported this industry to a great extent. A decision was taken by the GOI
on giving preference to Domestically Manufactured Iron & Steel. This holds
best in case of internal demands of states and their procurement.
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Quality
Check- As per the policy of the GOI, there has been a drastic cut down on the
manufacture and import of cheap quality or substandard steel.
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Purvodaya
Program- Herein the GOI has decided to create an integrated steel hub in the
eastern region of India. The states of Odisha, Chattisgarh, northern Andhra
Pradesh and West Bengal account for nearly 80% of the iron ore reserves. About
100% of coking coal and other mineral reserves such as dolomite, bauxite and
chromite.
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Coal
Mining Industry- This sector has been liberalized by the GOI. This is a shot in
the arm for the steel industry to a large extent. The GOI is also inviting more
foreign investments in the steel sector. This too will boost the sector
positively.
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Port
facilities- the eastern region has major ports such as Haldia, Kolkata, Vizag
and Paradip. These are capable of handling 30% of the major port capacity in
India. This region is hence industrially and as exporting hub.
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Domestic
Consumption Up- The growth of steel production is vastly attributed to the rise
in domestic consumption levels. As per the information shared by the Union
Minister for Steel, the per capita steel consumption has grown from 57.8
kilograms to 78 kilograms. This is a rise of almost 50% in the last 8 years.
On the whole, it
is a great stride for India to become the second-largest producer of crude
steel. In the coming years, we shall steadily progress on this growth story.
But the question remains, at what cost?
China and Japan
the 1st and the 3rd largest steel producers have set a
target to become carbon-neutral in the next few decades. They have downgraded
their steel production capacities keeping an eye on this target. The USA in 4th
position uses environmentally friendly and innovative technology that produces
320% less carbon in steel production. Is India’s growth path in steel
production set to meet the environmental challenges in the near future?